Complying to Underquoting Legislation with Plezzel

Real estate agents caught underquoting on Victorian residential properties can cop hefty fines of up to $30,000 and be stripped of their commission under new reforms coming into force on May 1 2017.  The State Government is cracking down on various advertising practices, including using terms such as “offers above”, “from” and “plus”.

Agents must provide prospective buyers with a “Statement of Information”, in an approved form for each residential property advertised for sale.

The Statement of Information must be:

– displayed at all open for inspections

– included with online advertising

– given to a prospective buyer within two business days of a request

– updated if there is a change in the indicative selling price.

 

The Impact of Non-Compliance

Since similar underquoting legislation was passed in New South Wales, more than 28 fines have been issued totally $61,600. However the maximum fine issued in New South Wales is $22,000, whereas Victorian agents face greater penalties of up to $30,000. We have already seen cases here which prove the consequences for non-compliance are severe.  In a recent case, one Victorian agency was fined $330,000 for underquoting on 11 residential sales.

Upon request, agents must prove to Consumer Affairs Victoria how they arrive at the price guide. If agents are found in court or VCAT to have breached the Estates Agents Act, they can lose their licenses. Even if a real estate agent manages to keep their licence, they will still have suffered irreparable damage to their brand and reputation.

 

How We Can Help

These new laws present significant compliance challenges for real estate agents and many won’t be prepared by the time the legislation comes into force. Agents must be vigilant, informed and proactive in order to avoid brand damage and hefty fines. Real Estate Bookings can help agencies stay compliant with our integrated software solutions.

 

 

 With our real estate software, you can:

– Create a “Statement of Information” for all your residential listings with ease and meet the legislative requirements of indicative selling price, comparable sales and median house/unit suburb price.

–  This “Statement of Information” can be integrated into Plezzel enquiry responses, meaning your prospective buyers are receiving information in a lawful way with no additional effort on your part.

–  Agents can provide information about comparable sales, estimated prices and median suburb prices to prospective buyers at open homes using the app

–  Agents can easily notify prospective buyers if there has been any change to price.

By using the latest technology, your agency can seamlessly adapt to the new legislative landscape. You can stress less about staying compliant to stringent laws and focus on the important things; nurturing leads and growing your brand.